SPEECH BY MR POLSON

Hokitika Guardian, 24 May 1928, Page 4

SPEECH BY MR POLSON

HUGE INTEREST BURDEN. -By Telegraph—Per Press Association.) HAMILTON, May 23. Hli- W. J. Poison. Dominion President' of the Farmers’ Union, vigorously attacked the Government for its bin rowing policy, when addressing the Provincial Farmers’ Coulcronce this afternoon. Mr Poison said: “During the period since the war, we have been increasing our national debt-that is the public debt—at the rate of nearly one million pounds per month. , The interest rate lias also been increasing. Our gross national debt on March 31sl. in the year 1921, was £200,324,000. The amount borrowed since then lias been £44,080,000, thus bringing the debt up to £245,850,000 in 1927.” Mr Poison also detailed the Local Body debt, which, less the amount borrowed by local b.idies from the Goveinment in 1927, had reached the extraordinary total of €04,000,000. “It is quite obvious,” be said, “that the renewals of these loans must mean an increased rate of interest, in spite of the recently made boast about the success of the last New Zealand Loan.” This loan, 31 r Poison described as “a fuss about 4d” because, he said, the net yield to the investors was £5. and fourpence, whereas in the ease of Connnonealth last loan, more recently floated than New Zealand’s loan, the net yield to the investors was £5. There was only a difference of 4d. 'I he banking authorities showed that in the last few years all the issues had participated in a general improvement and New Zealand among them. Mr Poison continued : “In the next four years the New Zealand Government is maturing £87,475.000 worth of loans, which will have to be renewed. This means that the increased interest charge for the renewals alone during the next four years will be over £400,000. In addition, the new bums, estimated by the Government, will mean another million interest in the next five years. In a speech, in reply tome. Mr Downic Stewart has admitted that the exports must pay for the imports, and that they should show a sufficient surplus to pay also for the oversea loans. This is just my point. Now. Mr Downic Stewart claims credit for the import of capi-a’ williout making a debit for the borrowing! This is most extraordinary book-keep-ing for a Minister of Finance. He forgets that he has borrowed 42s 01 worth and must pay back £4 and lie suggests that be lias borrowed £1 ar.d need onlv pay back 42s Gd! Taking these figures into- account, we find that the burrowing rate ot the country has enormously increased since the

“In the reply of Mr James on behalf of the Government to my Mastert-on speech, it is stated that I ignored the fact that.tile import values are loaded

with TO per cent. The loading is in-1 tended to cover, in part the cost of I transport, freight, insurance, etc. Mr James is apparently under the impression that we got our transport done for nothing! To eliminate it would falsify the figures, ami, as a fact, 10 per cent, is not nearly enough to cover the charges. In the. 1924-25 Year Book, the Government' Statistician gives an estimated balance sheet of debits and credits for New Zeaand. He estimates freight, insurance j and exchange at 20 per cent, of the imports. The aggregate of our imports from 1921 to 1927 was £317,000,000. This gives £28,817,000 as the added amount for freight, over the period. If the basis adopted by the Government in this trade balance statement is correct, then the sum ■■:!' €29,000,000 must be added to impirfs to get the balance of the freight charges for the period. This would make my figures all the more farinida'Ue. It would he interesting to know why these statements from the Year Book were dropped after two years.”